[Federal Register: April 3, 2008 (Volume 73, Number 65)]
[Notices]               
[Page 18301-18302]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03ap08-86]                         

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF LABOR

Employee Benefits Security Administration

 
Proposed Extension of Information Collection Request Submitted 
for Public Comment; Procedure for Application for Exemption From the 
Prohibited Transaction Provisions of Section 408(a) of the Employee 
Retirement Security Act (ERISA)

AGENCY: Employee Benefits Security Administration, Department of Labor.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Department of Labor, as part of its continuing effort to 
reduce paperwork and respondent burden, conducts a preclearance 
consultation program to provide the general public and Federal agencies 
with an opportunity to comment on proposed and continuing collections 
of information in accordance with the Paperwork Reduction Act of 1995 
(PRA 95). This program helps to ensure that requested data can be 
provided in the desired format, reporting burden (time and financial 
resources) is minimized, collection instruments are clearly understood, 
and the impact of collection requirements on respondents can be 
properly assessed. Currently, the Employee Benefits Security 
Administration is soliciting comments on the proposed extension of the 
information collection provisions included in the procedure for 
applications for exemption from the prohibited transaction provisions 
of section 408(a) of the Employee Retirement Income Security Act of 
1974 (ERISA) (29 CFR 2570.30, et seq.). A copy of the information 
collection request (ICR) can be obtained by contacting the individual 
shown in the ADDRESSES section of this notice or at http://
www.RegInfo.gov.

DATES: Written comments must be submitted to the office shown in the 
ADDRESSES section on or before June 2, 2008.

ADDRESSES: G. Christopher Cosby, Department of Labor, Employee Benefits 
Security Administration, 200 Constitution Avenue, NW., Washington, DC 
20210, (202) 693-8410, Fax (202) 693-4745 (these are not toll-free 
numbers).

SUPPLEMENTARY INFORMATION:

I. Background

    Section 408(a) of ERISA provides that the Secretary may grant 
exemptions from the prohibited transaction provisions of sections 406 
and 407(a) of ERISA and directs the Secretary to establish an exemption 
procedure with respect to such provisions. In this regard, the 
Department previously issued a regulation which describes the 
procedures that must be followed in filing for such exemptions (29 CFR 
2570.30 et seq.). Under section 408(a) of ERISA, in order for the 
Secretary to grant an exemption, it must be determined that such 
exemption is ``(1) Administratively feasible; (2) in the interests of 
the plan and its participants and beneficiaries; and (3) protective of 
the rights of participants and beneficiaries.'' In order to make such 
determination, the Department requires full information regarding all 
aspects of the transaction, including the specific circumstances 
surrounding the transaction, and the parties and assets involved. Thus, 
sections 2570.34 and 2570.35 of the exemption procedures regulation 
lists the information that must be supplied by the applicant. This 
information includes: Identifying information (name, type of plan, EIN 
number, etc.); an estimate of the number of plan participants; a 
detailed description of the transaction and the parties for which an 
exemption is requested; statements regarding what section of ERISA is 
thought to be in violation and whether the transaction(s) involved have 
already been entered into; a statement of whether the transaction is 
customary in the industry; a statement of the hardship or economic 
loss, if any, which would result if the exemption were denied; a 
statement

[[Page 18302]]

explaining why the proposed exemption would be administratively 
feasible, in the interests of the plan and protective of the rights of 
plan participants and beneficiaries; and several other statements. In 
addition, the applicant must certify that the information supplied is 
accurate and complete.
    Section 408(a) of ERISA requires that before granting an exemption 
from 406(a) the Secretary ``shall require that adequate notice be given 
to interested parties, and shall afford interested persons opportunity 
to present views.'' Thus, section 2570.43 of the exemption procedures 
regulation requires that the applicant for an exemption provide 
interested persons with a copy of the Federal Register notice 
containing the proposed exemption and a statement which informs them of 
their right to comment on the proposed exemption.

II. Review Focus

    The Department of Labor (Department) is particularly interested in 
comments that:
     Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
     Evaluate the accuracy of the agency's estimate of the 
burden of the proposed collection of information, including the 
validity of the methodology and assumptions used;
     Enhance the quality, utility, and clarity of the 
information to be collected; and
     Minimize the burden of the collection of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submissions of responses.

III. Current Actions

    The Office of Management and Budget's (OMB) approval of this ICR 
will expire on July 31, 2008. After considering comments received in 
response to this notice, the Department intends to submit the ICR to 
OMB for continuing approval. No change to the existing ICR is proposed 
or made at this time.
    Comments submitted in response to this notice will be summarized 
and/or included in the request for OMB approval of the information 
collection request; they will also become a matter of public record.
    Agency: Employee Benefits Security Administration, Department of 
Labor.
    Title: Procedure for Application for Prohibited Transaction 
Exemption Regulation pursuant to 29 CFR 2570.30, et seq.
    Type of Review: Extension of a currently approved collection of 
information.
    OMB Number: 1210-0060.
    Affected Public: Individuals or households; business or other for-
profit; not-for-profit institutions.
    Respondents: 84.
    Responses: 143.
    Average Response time: 25 hours.
    Estimated Total Burden Hours: 0.
    Estimated Total Burden Dollars: $373,000.

Joseph S. Piacentini,
Director, Office of Policy and Research, Employee Benefits Security 
Administration.
 [FR Doc. E8-6767 Filed 4-1-08; 8:45 am]

BILLING CODE 4510-29-P